Berklee Consolidated Financial Statements: May 31, 2025, and 2024

Letter from the Executive Vice President and Chief Financial Officer

Dear Berklee community, 

I am pleased to present the consolidated Fiscal Year 2025 financial results for Berklee including the Statement of Activities, which details our financial performance for the fiscal year (ending May 31, 2025); the Statement of Financial Position, which provides a snapshot of the college’s health as of the prior fiscal year end; and the Statement of Cash Flows, which explains the changes in cash position for Berklee over the entire fiscal year.  Together with the notes to the financial statements, these documents provide an important report card on the financial well-being of our world-class institution. This narrative supplements the financial statements by highlighting some of the pertinent aspects of our results and financial strength and is prepared in accordance with “An Act to Support Improved Financial Stability in Higher Education,” a Massachusetts General Law (Chapter 69, Section 31B). Berklee’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) which follow the accrual basis of accounting. As you will see in the accompanying letter from our Auditors, KPMG LLP, Berklee received an Unmodified Opinion (the highest opinion) with no audit findings.

Statement of Activities

Overall, the College achieved an operating surplus for Fiscal Year 2025 of approximately $0.76M, notably lower than recent years but due, in large part, to Berklee’s strategic decision to make a greater investment in scholarship support to better address affordability and the evolving needs of our students. Berklee also made significant and strategic investments in our facilities, our technology, and the overall student educational experience. Overall, total tuition, fees and room and board increased by $6.3M as compared to the prior year; more than offsetting this was a $10.7M increase in scholarship aid provided to students, resulting in an overall $4.4M decline in net tuition, fee, room & board revenue vs. the prior fiscal year.  Adding to this overall decline as compared to the prior year were lower gifts, grants, and contract revenue along with lower auxiliary revenue (example). Other income did increase, year-over-year, as a result of higher interest income on short-term investments.

Operating expenses remained relatively consistent with the prior year, while the College increased its investment in academic support and campus facilities resulting in higher operations, maintenance, and depreciation expense. This increase highlights Berklee’s ongoing commitment to enhancing the resources and services that support student learning and success, while expanding the campus with new and upgraded facilities to meet current space needs and support future growth. Despite the inflationary pressure from higher costs, these strategic investments reaffirm the College’s disciplined approach to resource allocation in support of academic excellence and overall student experience.

Statement of Financial Position (Balance Sheet)

Berklee’s balance sheet continues to strengthen, with total assets approaching nearly $1 billion ($972.6 million), an increase of $23.1 million over the prior year. This growth was primarily driven by robust endowment returns of 12.5% which increased long-term investments by $39.1 million. Offsetting this increase was the planned use of cash reserves to fund strategic capital facilities projects and technology infrastructure upgrades. Total liabilities decreased by $18.9 million, including a reduction in outstanding debt principal to $222.4 million.

Together, these strong results led to a $42.0 million increase in net assets, bringing total net assets to $581.1 million at the close of FY25. Notably, unrestricted net assets now comprise 72.5% of the total, positioning Berklee favorably among peer institutions and providing the financial flexibility to pursue future strategic initiatives and opportunities, while effectively navigating the evolving challenges facing higher education.

Looking ahead, we remain committed to advancing Berklee’s mission through an updated strategic plan delivering excellence in education, continued investment in campus facilities and technology, and supporting the success of every student on their academic and educational journey.

View Berklee's consolidated financial statements. 

Paul Dworkis
Executive Vice President and Chief Financial Officer